Saudi ACWA Power Signs Power Purchase, Investment Agreements for Wind Plant in Uzbekistan

The Saudi Minister of Investment and his Uzbek counterpart attend the signing of power purchase agreements and investment agreements to develop the Kungrad wind farm. (Asharq Al-Awsat)
The Saudi Minister of Investment and his Uzbek counterpart attend the signing of power purchase agreements and investment agreements to develop the Kungrad wind farm. (Asharq Al-Awsat)
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Saudi ACWA Power Signs Power Purchase, Investment Agreements for Wind Plant in Uzbekistan

The Saudi Minister of Investment and his Uzbek counterpart attend the signing of power purchase agreements and investment agreements to develop the Kungrad wind farm. (Asharq Al-Awsat)
The Saudi Minister of Investment and his Uzbek counterpart attend the signing of power purchase agreements and investment agreements to develop the Kungrad wind farm. (Asharq Al-Awsat)

Saudi Arabia's ACWA Power has signed power purchase agreements (PPAs) and investment agreements (IAs) with Uzbekistan’s government to develop the 1.5GW Kungrad wind farm, formerly referred to as the Karakalpakstan Wind Independent Power Producer (IPP).

The wind farm shall comprise three 500MW wind power projects owned by three subsidiaries, namely ACWA Power Kungrad Wind 1, ACWA Power Kungrad Wind 2 and ACWA Power Kungrad Wind 3.

Each of the three projects will also incorporate a 100MW capacity battery energy storage system.

Regarded as the largest single-site wind farm in Central Asia to date, and one of the largest of its kind in the world, the wind farm is expected to reach an investment value of $2.4 billion.

Located in Kungrad district in Uzbekistan’s Karakalpakstan, the wind farm is expected to offset 2.4 million tons of carbon emissions per year. It will have minimum environmental impact due to the utilization of the latest mitigation technologies, including bird detecting technology, that combines cutting edge technology in both image sensors and software to prevent bird collision or fatality.

Uzbekistan’s Energy Minister Jurabek Mirzamakhmudov said: “It is my great pleasure to share an update on the progress of the Kungrad project.”

He affirmed that Uzbekistan is committed to delivering on policy goals to increase the renewable energy share of the country’s energy mix and reduce carbon emissions.

He underlined the country’s keenness to develop green energy and market reform.

Mirzamakhmudov pointed out that the Kungrad project is a milestone for the country’s wind industry and the new public-private partnership model, introduced by the far-sighted reforms of President Shavkat Mirziyoyev.

The wind farm in Karakalpakstan, which will be built by Uzbekistan’s reliable partner ACWA Power, will be another pillar of a sustainable and reliable energy system in Uzbekistan, the minister added.

The Kungrad wind farm will bolster the Uzbek government’s long-term strategy to diversify the country’s energy mix, which targets 8GW and 12GW of solar and wind capacity by 2026 and 2030, respectively.

“We are deeply honored to build upon our close partnership with the Republic of Uzbekistan as the nation continues to advance its decarbonization efforts, pursuing a strong shift towards renewable energy,” said ACWA Power Chairman Mohammad Abunayyan.

“The signing of key agreements for the landmark Kungrad wind farm project, which will set a new benchmark for sustainable energy development in the region, and the world, would have not been possible without the guidance of our visionary leadership and the trust and commitment of our partners from the Uzbek government.”

The project is expected to achieve financial close by 2024 and will be fully commissioned in 2027. When complete, the facility is expected to power 1.65 million households.

Caption: The Saudi Minister of Investment and his Uzbek counterpart attend the signing of power purchase agreements and investment agreements to develop the Kungrad wind farm. (Asharq Al-Awsat)



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.