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.



Saudi Arabia Ranks Second Globally in Data Center Market Attractiveness

A view of the Riyadh skyline, the Saudi capital (Royal Commission for Riyadh City)
A view of the Riyadh skyline, the Saudi capital (Royal Commission for Riyadh City)
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Saudi Arabia Ranks Second Globally in Data Center Market Attractiveness

A view of the Riyadh skyline, the Saudi capital (Royal Commission for Riyadh City)
A view of the Riyadh skyline, the Saudi capital (Royal Commission for Riyadh City)

Saudi Arabia has ranked second globally, after the United States, among the most attractive markets for data centers—an achievement that reflects the Kingdom’s growing position in digital infrastructure and its rapid expansion in a market increasingly driven by artificial intelligence and cloud computing.

According to a Bloomberg analysis, Saudi Arabia secured second place globally in data center market attractiveness. The analysis also indicated that power availability and land enablement together account for 58% of market attractiveness for data center projects. At the same time, 22.8 gigawatts of new capacity are currently under development worldwide and are expected to come online within the next three years, increasing the value of markets capable of absorbing this growth at scale and with speed, SPA reported.

This progress builds on the rapid expansion of the data center sector in the Kingdom, where operational capacity increased from 68 megawatts in 2021 to 440 megawatts in 2025—representing nearly sixfold growth over four years. This reflects the accelerated development of digital infrastructure and the growing attractiveness of the Saudi market in this critical sector.

The sector continued its growth in the first quarter of 2026, with capacity rising to 467 megawatts—an increase of more than 6% since the beginning of the year—highlighting the sustained expansion of a market that has become a key driver of digital infrastructure and the data-driven economy powered by cloud computing and artificial intelligence.

According to SPA, today, Saudi Arabia hosts more than 60 data centers across multiple regions, reflecting the expansion of the market, the strengthening of its operational base, and its ability to meet the growing demand for digital services, cloud computing, and AI applications. This growth is further supported by the Kingdom’s geographic depth, which provides developers and operators with greater flexibility in site distribution and phased expansion, in addition to its strategic location linking Asia, Europe, and Africa—enabling access to broad markets from a single hub.

Commenting on this progress, head of the Artificial Intelligence Enablement Office at the Ministry of Communications and Information Technology Eng. Bassam Al-Bassam stated: “This reflects the Kingdom’s growing position in the data center sector and confirms that the progress achieved in digital infrastructure, power availability, development speed, and operational readiness has positioned Saudi Arabia among the most capable markets in attracting high-quality investments in this sector.”

He added that this progress strengthens the confidence of global investors in the Saudi market and supports the Kingdom’s positioning as a global hub for digital infrastructure and artificial intelligence.

This achievement gains further significance as Saudi Arabia ranked first globally in the Digital Readiness Framework 2025, scoring 94 out of 100 in the “very high” category, ahead of Finland, Germany, the United Kingdom, Norway, and France. This reflects the maturity of the regulatory environment, digital governance, and institutional efficiency—factors that are increasingly critical in a sector that depends on regulatory clarity, operational reliability, and speed of execution.

This position is further reinforced by an advanced digital ecosystem, including 99% internet penetration, fiber coverage reaching 5.8 million homes, and a technology market exceeding SAR199 billion in 2025. In addition, local internet traffic through the Saudi Internet Exchange surpassed 2.462 terabits per second in the same year, enhancing the readiness and reliability of the digital environment supporting data center operations.

This achievement underscores that Saudi Arabia is not only keeping pace with growing demand for digital infrastructure but is also advancing in building the foundational capabilities required for the next phase of the digital economy. As global pressures on power and land intensify in traditional markets, Saudi Arabia is emerging as a destination that combines capacity, readiness, flexibility, and scalability—further strengthening its position as a rising global hub in the data center race.


China Rejects US Sanctions on Five Oil Refineries

Independent small Chinese refineries purchase 90% of Iranian oil shipments (Reuters).
Independent small Chinese refineries purchase 90% of Iranian oil shipments (Reuters).
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China Rejects US Sanctions on Five Oil Refineries

Independent small Chinese refineries purchase 90% of Iranian oil shipments (Reuters).
Independent small Chinese refineries purchase 90% of Iranian oil shipments (Reuters).

China will not comply with US sanctions against five firms targeted for purchasing Iranian oil, Beijing's commerce ministry said on Saturday.

China is a key customer for Iranian oil, mainly through independent "teapot" refineries that rely on discounted crude from Iran.

The United States, seeking to choke off revenue to Tehran, has ramped up sanctions on such refineries.

The commerce ministry's injunction, relating to sanctions announced separately since last year, states that the US measures "shall not be recognized, implemented, or complied with".

The sanctions "improperly prohibit or restrict Chinese enterprises from conducting normal economic, trade and related activities with third countries... and violate international law and the basic norms governing international relations," the ministry said in a statement.

"The Chinese government has consistently opposed unilateral sanctions lacking UN authorization and a basis in international law."

The injunction applies to three companies in Shandong province -- Shandong Jincheng Petrochemical Group, Shandong Shouguang Luqing Petrochemical and Shandong Shengxing Chemical -- and two others based elsewhere in China, Hengli Petrochemical (Dalian) Refinery and Hebei Xinhai Chemical Group.

Washington imposed on Friday sanctions on yet another Chinese firm which it said had imported "tens of millions of barrels" of Iranian crude oil, generating billions of dollars in revenue for Tehran.

The firm, Qingdao Haiye Oil Terminal Co., Ltd., was not mentioned in the commerce ministry's injunction.


Spirit Airlines Shuts Down, Industry’s First Iran War Casualty

A Spirit Airlines self bag-drop counter at Orlando International Airport, as the airline announced it was ceasing operations early Saturday morning following an impasse in talks with some creditors on a $500 million government bailout plan, in Orlando, Florida, US, May 2, 2026. (Reuters)
A Spirit Airlines self bag-drop counter at Orlando International Airport, as the airline announced it was ceasing operations early Saturday morning following an impasse in talks with some creditors on a $500 million government bailout plan, in Orlando, Florida, US, May 2, 2026. (Reuters)
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Spirit Airlines Shuts Down, Industry’s First Iran War Casualty

A Spirit Airlines self bag-drop counter at Orlando International Airport, as the airline announced it was ceasing operations early Saturday morning following an impasse in talks with some creditors on a $500 million government bailout plan, in Orlando, Florida, US, May 2, 2026. (Reuters)
A Spirit Airlines self bag-drop counter at Orlando International Airport, as the airline announced it was ceasing operations early Saturday morning following an impasse in talks with some creditors on a $500 million government bailout plan, in Orlando, Florida, US, May 2, 2026. (Reuters)

Bankrupt discount carrier Spirit Airlines ceased operations on Saturday, the industry's first casualty linked to the Iran war, after failing to secure creditor support for a US government bailout plan.

The collapse of the first carrier due to a doubling in jet fuel prices during the two-month-old Iran war will cost thousands of jobs. It is a blow to President Donald Trump, who had proposed $500 million to save Spirit despite opposition from some of his closest advisers and many Republicans in Congress.

No US carrier of Spirit's size - it accounted for 5% of US flights at one point - has liquidated in two decades. Spirit helped keep fares lower in markets where it competed against major carriers.

ALL FLIGHTS CANCELED, RIVALS TO BENEFIT

A Spirit board meeting had ended without an agreement to rescue the company, a person close to the discussions told Reuters late on Friday.

"Unfortunately, despite the Company's ‌efforts, the recent material ‌increase in oil prices and other pressures on the business have significantly impacted Spirit's financial outlook," Spirit ‌said ⁠in a statement ⁠announcing "an orderly wind-down of operations."

All flights have been canceled, the statement said, asking passengers not to go to the airport.

Spirit had 4,119 domestic flights scheduled between May 1 and May 15, offering 809,638 seats, according to data from aviation analytics firm Cirium.

A spokesperson said Spirit had notified the Federal Aviation Administration before halting operations, declining to comment further.

Global carriers are contending with surging jet fuel prices after the US-Israeli strikes on Iran disrupted traffic through the Strait of Hormuz. Spirit was already struggling to turn a profit before the fuel shock.

Spirit built its brand around affordable fares for budget-conscious travelers ready to eschew add-ons like checked bags and seat assignments.

That demand tapered off quickly after the COVID-19 pandemic, as passengers preferred to opt for comfort and experience-based travel, leaving ⁠ultra-low-cost carriers struggling to adapt.

Spirit's shutdown will benefit its rivals like JetBlue Airways and Frontier Airlines, ‌who themselves are reeling from the cost shock. Spirit's volatile over-the-counter stock plunged 25% on Friday, ‌while Frontier rose 10% and JetBlue gained 4%.

Trump said on Friday that the White House had given Spirit and its creditors a final rescue proposal, ‌after talks hit an impasse over a $500 million financing package that would have helped the airline keep operating through bankruptcy.

"If we can help ‌them, we will, but we have to come first," Trump told reporters. "If we could do it, we'd do it, but only if it's a good deal."

FUEL-PRICE SHOCK THREATENS WEAKER AIRLINES

The collapse shows how the Iran war's fuel-price shock has exposed weaker airlines.

Spirit's restructuring plan assumed jet fuel costs of about $2.24 a gallon in 2026 and $2.14 in 2027, but prices had climbed to around $4.51 a gallon by the end of April, leaving the carrier unable to survive without fresh ‌financing.

Transportation Secretary Sean Duffy told Reuters he had tried to get many airlines to buy Spirit but found no takers. "What would someone buy?" Duffy asked. "If no one else wants to buy them, ⁠why would we buy them?"

A ⁠creditor close to the deal said, "The Trump administration made an extraordinary effort to try and save Spirit, but you can’t breathe life into a corpse. Given that, the company should make its intentions clear for the sake of its customers and employees."

Spirit had reached a deal with its lenders that would have helped it emerge from its second bankruptcy by late spring or early summer. But those plans derailed after the war triggered a spike in jet fuel prices, upending Spirit's cost projections and complicating its bankruptcy exit.

The airline flew around 1.7 million US domestic passengers in February, with a 3.9% market share, down from 5.1% last year, Cirium data showed.

After Spirit's announcement, major US carriers rolled out rescue-fare options for affected passengers. Frontier announced systemwide discounts and plans to add summer routes, JetBlue offered $99 fares through Wednesday, Southwest introduced special fares, United capped prices on one-way tickets and American added rescue fares while reviewing options to boost capacity on key routes.

Last month Trump said his administration was looking to buy the embattled carrier at the "right price."

Sources said that the administration had proposed $500 million in financing in exchange for warrants equivalent to 90% of Spirit's equity.

There had been disagreements inside the Trump administration over whether and how to fund the bailout, the Wall Street Journal reported, citing people familiar with the matter.