KSA: Global Logistics Crisis Delays Vehicle Deliveries

The growing interest among Saudi women to buy vehicles coincides with the scarcity of cars in Saudi Arabia. (Photo: Asharq Al-Awsat)
The growing interest among Saudi women to buy vehicles coincides with the scarcity of cars in Saudi Arabia. (Photo: Asharq Al-Awsat)
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KSA: Global Logistics Crisis Delays Vehicle Deliveries

The growing interest among Saudi women to buy vehicles coincides with the scarcity of cars in Saudi Arabia. (Photo: Asharq Al-Awsat)
The growing interest among Saudi women to buy vehicles coincides with the scarcity of cars in Saudi Arabia. (Photo: Asharq Al-Awsat)

Noura Al-Subaie, an employee in the education sector, paid a deposit to book her new car, which was expected to be delivered in a two-month period.

However, as soon as she left the showroom, the salesperson contacted her to inform her that the delivery would be postponed for reasons beyond their control, due to the global logistics crisis.

The growing interest among Saudi women to buy vehicles coincides with the scarcity of cars in Saudi Arabia, as the world is currently facing a disruption in the logistics chain, as a result of the effects of the Covid-19 pandemic, which led to a slowdown in transport movement in ports and international lines with the continued partial closures in producing countries.

In remarks during the Iron and Steel Conference last month in Riyadh, Saudi Industry Minister Khaled al-Falih said that the global energy crisis and epidemics have disrupted ports operations and supply chains.

The Saudi Ministry of Commerce had acknowledged months ago that there were large lists of vehicle reservations and delivery delays, due to the effects of the Covid-19 pandemic and the supply chain crisis.

On the other hand, recent statistics revealed that the unemployment rate of Saudi females decreased to 19.3 percent in the second quarter of 2022, a decline of 3 percent over the same period last year.

Speaking to Asharq Al-Awsat, Al-Subaie said that the salesperson told her that delivery delays were due to the failure of car manufacturers to fulfill their commitment, pointing to scarcity of stock and shipment supplies.

In a decision issued in September 2017, the Saudi authorities allowed women to drive, in a step that meets the objectives of societal transformation in the Kingdom and enables women to actively contribute to the economic life.

Khaled Al-Qahtani, a logistics services specialist, said that the logistics sector in the world was still facing a crisis that affects the movement of transport, pointing to three main factors in this context.

He first pointed to flexibility and the need to restructure the supply chain through a more balanced risk-taking approach.

The second factor is economic sustainability of the supply chain in particular. Al-Qahtani said that the companies’ transportation logistics budgets were consumed in a very short period of time during 2022 due to the increase of freight rates.

As for the third factor, Al-Qahtani points to the continuous imbalance between supply and demand.

A report issued by a London-based institution on the development of the Saudi car market between 2012 and 2022, showed that the market would grow to $29.3 billion by 2022 thanks to many factors, including the right of women to drive, the development of the country’s infrastructure and the growth of per capita income.



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.