Bahrain Joins Industrial Partnership for Sustainable Economic Development

The second Higher Committee meeting of the Industrial Partnership for Sustainable Economic Development kicked off in Cairo on Monday. (Asharq Al-Awsat)
The second Higher Committee meeting of the Industrial Partnership for Sustainable Economic Development kicked off in Cairo on Monday. (Asharq Al-Awsat)
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Bahrain Joins Industrial Partnership for Sustainable Economic Development

The second Higher Committee meeting of the Industrial Partnership for Sustainable Economic Development kicked off in Cairo on Monday. (Asharq Al-Awsat)
The second Higher Committee meeting of the Industrial Partnership for Sustainable Economic Development kicked off in Cairo on Monday. (Asharq Al-Awsat)

The second Higher Committee meeting of the Industrial Partnership for Sustainable Economic Development kicked off in Cairo on Monday.

The committee, which includes Egypt the United Arab Emirates and Jordan, announced and welcomed Bahrain as a new member, represented by Minister of Industry and Commerce Zayed bin Rashid al-Zayani.

Egyptian Minister of Commerce and Industry Nevine Gamea, UAE Minister of Industry and Advanced Technology Sultan bin Ahmed al-Jaber and Jordan's Minister of Industry, Trade and Supply Yousef al-Shamali co-chaired the meeting.

The committee shortlisted 12 projects worth $3.4 billion to move into feasibility studies.

The event was a continuation of the executive committee meetings held over the past two days and a culmination of weeks’ long sectoral workshops of experts in the fields of pharmaceuticals, agriculture, fertilizers and food.

The Executive Committee received 87 industrial project proposals focused on fertilizers, agriculture and food.

In the next phase, the Partnership will focus on the metals, chemicals, plastics, textiles and clothing sectors.

The Committee held its first meeting in early June and discussed mechanisms for expanding the partnership by welcoming new members.

It tackled accelerating the pace of economically feasible opportunities under the umbrella of the industrial sector in the participating countries.

The meeting also focused on the importance of the private sector’s participation and its key role in activating this industrial partnership that focuses on five sectors: agriculture and food, fertilizers, pharmaceuticals, textiles, minerals, and petrochemicals.

Gamea underscored the importance of the industrial partnership in addressing the economic consequences of global crises and highlighted the importance of the private sector’s engagement in sustainable development for the Arab World.

“This partnership is key to ensuring value and supply chains, reaching industrial self-sufficiency, and creating more jobs,” said Gamea, who welcomed Bahrain to join this partnership, “which will help maximize the benefit of the industrial capabilities of the four countries.”

“To make use of this initiative, partners will exchange science and technology expertise, set up industrial partnerships, and take advantage of the partners’ markets to promote multilateral trade.”

She stressed that her country is keen to do what it takes to support this partnership and pave its way to achieve its targets.

Jaber, for his part, said the UAE underscored its commitment to the partnership by allocating 10 billion investment in the projects it will yield and is managed by ADQ Holding.

“We welcome Bahrain as a vital and dynamic addition to the partnership,” he said, noting that the kingdom’s industrial sector plays a crucial role in sustainable economic development.

He called on companies to leverage the competitive advantages and opportunities for partnership available in each of the participating nations and to conduct their own feasibility studies to maximize their projects’ chances of success.

“As government agencies, we must identify the key enablers these projects require to succeed and do everything in our power to help companies overcome potential obstacles,” he remarked.

This combination of government support with private sector commitment will help the partnership achieve maximum sustainable economic and social benefits, Jaber added.

Shamali said Jordan is keen to support all aspects of joint Arab work, adding that the meeting shows how the leaders of the three countries share a common vision about joining efforts to create a comprehensive economic project.

“The meeting highlighted the political and economic ties binding our nations, and ushers in a new era of joint action and effective economic integration with tangible impacts,” the minister stated.

For his part, Zayani said Bahrain has achieved continuous success and growth in the industrial sector over the past decades.

This is a result of the policies adopted by the government since the 1960s that sought to reduce reliance on oil and natural gas, and diversify the industrial sector by setting up factories in the fields, such as aluminum.

It also established new industrial zones and attracted foreign investments by encouraging industrial projects and providing the necessary infrastructure.

In order to advance the industrial sector, Bahrain’s government launched the Industrial Sector Strategy (2022-2026) on December 30 as a pivotal part of the post-pandemic economic recovery plan.

The strategy, according to Zayani, aims to increase the industrial sector's contribution to GDP, increase exports, and provide jobs for citizens.

It is based on adopting the Fourth Industrial Revolution, implementing the concept of a circular carbon economy along with effective environmental and social governance policies, encouraging investment in technological infrastructure and manufacturing automation, and increasing the efficiency of supply chains to build a developed and sustainable industry.

In 2019, UAE, Egypt, Jordan, and Bahrain accounted for 30% of the Middle East and North Africa’s industrial contribution to GDP, totaling $65 billion worth of industrial exports.

The countries’ combined population is 122 million, representing 27% of the MENA region and 49% of the region’s youth population under 24.

The value of foreign direct investment in the UAE, Egypt and Jordan reached $151 billion between 2016-2020, comprising 42% of new foreign direct investment in the Middle East.

The total value of the countries’ exports stood at $433 billion in 2019, while imports amounted to approximately $399 billion.

Adding Bahrain, which has a GDP of $39 billion, will greatly enhance the Partnership and contribute significantly to its results.

The Partnership is expected to increase the GDP of member countries by $809 billion by unlocking billions worth of opportunities across sectors, including $1.7 billion in the food and agricultural sector, $4 billion in the minerals sector, $1.7 billion in chemicals and plastics, and $0.5 billion in medical products.



JMMC Holds 65th Meeting via Videoconference, Discusses Energy Security and Market Stability

General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
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JMMC Holds 65th Meeting via Videoconference, Discusses Energy Security and Market Stability

General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah

The Joint Ministerial Monitoring Committee (JMMC), comprising Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Nigeria, Algeria and Venezuela holds its 65th Meeting via videoconference.

The JMMC reviewed current market conditions and emphasized the essential role of the Declaration of Cooperation (DoC) in supporting the stability of global energy markets, according to SPA.

In this context, the committee highlighted the critical importance of safeguarding international maritime routes to ensure the uninterrupted flow of energy.

It also expressed concern regarding attacks on energy infrastructure, noting that restoring damaged energy assets to full capacity is both costly and takes a long time, thereby affecting overall supply availability.

Accordingly, the committee stressed that any actions undermining energy supply security, whether through attacks on infrastructure or disruption of international maritime routes, increase market volatility and weaken the collective efforts under the DoC to support market stability for the benefit of producers, consumers, and the global economy.

In this regard, the committee commended the DoC countries that took the initiative to ensure the continued availability of supplies, particularly through the use of alternative export routes, which have contributed to reducing market volatility.

The JMMC will continue to closely monitor market conditions and retains the authority to convene additional meetings or request an OPEC and non-OPEC Ministerial Meeting, as established at the 38th ONOMM held on December 5 2024.

The next meeting of the JMMC (66th) is scheduled for June 7, 2026.


Saudi Market Edges Higher on Insurance and Basic Materials Support

An investor monitors stock prices on a screen at the Saudi stock market in Riyadh (AFP)
An investor monitors stock prices on a screen at the Saudi stock market in Riyadh (AFP)
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Saudi Market Edges Higher on Insurance and Basic Materials Support

An investor monitors stock prices on a screen at the Saudi stock market in Riyadh (AFP)
An investor monitors stock prices on a screen at the Saudi stock market in Riyadh (AFP)

Saudi Arabia’s benchmark Tadawul All Share Index (TASI) edged up 0.03 percent to 11,272 points on Sunday, supported by insurance and basic materials stocks. Total traded value reached SAR 4.27 billion ($1.1 billion).

Shares of Petro Rabigh and The National Shipping Company of Saudi Arabia (Bahri) rose 1 percent and 1.5 percent to SAR 10.9 and SAR 32.6, respectively.

Saudi Arabian Amiantit Co. (Amiantit) led gainers, rising 10 percent to SAR 15.63. In the materials sector, SABIC and Maaden advanced 0.84 percent and 0.46 percent to SAR 60.05 and SAR 65.7, respectively.

In insurance, The Company for Cooperative Insurance (Tawuniya) and Bupa Arabia climbed 1 percent and 2 percent to SAR 127.3 and SAR 174.1, respectively. Almarai rose 1.2 percent to SAR 44.48 after reporting its Q1 2029 results.

On the downside, Saudi Aramco—the index heavyweight—declined 0.22 percent to SAR 27.54.

ACWA Power fell about 1 percent to SAR 168 after announcing last week a temporary curtailment of power output at two of its solar projects. Emaar The Economic City (Emaar EC) was the biggest decliner, falling 7.6 percent to SAR 10.88.


Saudi Airports Serve as Safety Valve for Regional Air Traffic as ‘Hormuz Fallout’ Hits Global Aviation

King Khalid International Airport in Riyadh (SPA)
King Khalid International Airport in Riyadh (SPA)
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Saudi Airports Serve as Safety Valve for Regional Air Traffic as ‘Hormuz Fallout’ Hits Global Aviation

King Khalid International Airport in Riyadh (SPA)
King Khalid International Airport in Riyadh (SPA)

Conflicts in the region are no longer confined to the geography of battlefields; their fallout has reached one of the world’s most vital and sensitive industries: aviation. Today, travelers and airlines alike face a harsh reality driven by record surges in jet fuel prices and a steep spike in insurance costs, pressures that have pushed ticket prices higher, threatening a severe economic squeeze that could derail global tourism plans and reshape travel patterns long taken for granted.

The surge in aviation costs cannot be separated from the turmoil in global energy markets. The link between crude oil and jet fuel prices peaked in early April 2026. As market confidence wavered amid US military threats, crude prices jumped to record levels due to the direct risk to supplies through the Strait of Hormuz, setting off an immediate spike in jet fuel prices. Given that jet fuel is among the most valuable refined products from a barrel of oil, these unprecedented crude levels pushed aviation fuel to nearly double its 2025 levels.

Compound pressures and a tourism slowdown

In remarks to Asharq Al-Awsat, aviation and airport management expert AlMotaz Al-Mirah said the current tensions, in an industry already operating on thin margins, are quickly reflected in both pricing and demand across the tourism sector.

“The rise in ticket prices today is not driven by a single factor,” he said, “but by a combination of pressures: higher fuel consumption, longer routes, elevated insurance costs, and reduced operational efficiency.”

The World Travel & Tourism Council confirmed that “the escalating conflict in Iran is already impacting travel and tourism across the Middle East by no less than $600 million per day in international visitor spending, as disruptions to air travel, traveler confidence, and regional connectivity weigh on demand.”

According to council data released in March, the Middle East plays a critical role in global travel, accounting for 5 percent of international arrivals and 14 percent of global transit traffic. Any disruption reverberates worldwide, affecting airports, airlines, hotels, car rental firms, and cruise lines.

The family travel bill

On leisure travel, Al-Mirah said fare increases have ranged from 15 percent to 70 percent across many routes- higher still on long-haul flights.

“A ticket that used to cost $500 now ranges between $800 and $1,000,” he noted, “meaning an increase of up to $2,000 for a family of four.” This is forcing many travelers to delay trips or opt for closer destinations, reshaping demand across regional markets.

He detailed the price surge since the crisis began in late February: jet fuel rose from around $85–90 per barrel to between $150 and $200. This has driven the cost per flight hour for long-haul aircraft from an average of $10,000 to more than $18,000 in some cases. A flight carrying 180 passengers could see total additional costs of about $15,000, forcing airlines to add roughly $80 per ticket just to break even.

Globally, Brazil’s Petrobras raised jet fuel prices by about 55 percent in early April, while the Philippines warned that some aircraft could be grounded due to fuel shortages, and Taiwanese carriers are preparing to increase international fuel surcharges by 157 percent.

Longer routes, heavier maintenance burdens

Al-Mirah explained that longer flight times to avoid unstable airspace carry steep financial costs, with each additional hour adding between $5,000 and $7,500. Route changes extending flight durations by one to two hours have increased fuel consumption by up to 30 percent. More time in the air also accelerates engine wear.

The strain goes beyond fuel. Increased flight hours speed up the deterioration of engines and components, bringing forward maintenance schedules and raising annual servicing costs- ultimately reducing fleet efficiency.

Airlines are also grappling with sharply higher war-risk insurance premiums. While such costs typically account for no more than 1 percent of total operating expenses, they have surged by between 50 percent and 500 percent in the current crisis, according to a March 2026 report by Lockton.

This buildup of fuel and insurance costs threatens to turn profitable routes into loss-making ones, potentially forcing cash-strapped or low-cost carriers to suspend some routes temporarily to preserve financial stability.

An aircraft from Riyadh Air at Le Bourget Airport (Reuters)

Saudi airports support regional air traffic

Amid these complexities, Saudi Arabia’s General Authority of Civil Aviation has deployed its capabilities to activate regional support protocols. Gulf airlines have shifted logistical operations to Saudi airports to keep regional air traffic safe and moving.

The authority announced that the Kingdom received more than 120 flights from neighboring countries’ carriers between February 28 and March 16, including Qatar Airways, Iraqi Airways, Kuwait Airways, Jazeera Airways, and Gulf Air.